I hope you have had a great week. Here at Track Capital, we have been discussing the variety of investment plans available for those seeking to enter the market or diversify their portfolio. Whether you’re wondering about how best to invest your capital or what attraction Purpose-Built Student Accommodation may hold, our podcast and blog posts hold a wealth of information at your fingertips, ready to explore.
Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.
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Property news this week
- Few Tenants Feel Pandemic will Affect Rent Payments – A report released by Goodlord’s surveying 1,750 tenants has revealed that only 6% are concerned that the pandemic could impact their ability to pay rent. According to the same survey, reports of an increase in the number of rental arrears this past year has actually halved among lettings professionals, dropping from 64% to 32%.14% of lettings professionals reported a decrease in arrears. The most prevalent issue appears to be a pervasive lack of stock, with over 50% of agents revealing a 5% loss of their landlords in the past year. 64% of agents believe this situation will worsen, creating a wider gap in the market. This situation will likely continue to put upwards pressure on rental prices.
- UK House Prices Jump as Market Strength Persists – As reported in a recent survey from Halifax, British house prices rose sharply in August by 0.7% – the biggest rise in 3 months. This paints a picture of strong momentum in the market that hasn’t been slowed by the partial withdrawal of tax breaks on property purchases. When the year-long stamp duty exemption for the first £500K of a house purchase ended in July for residents in England and Northern Ireland, property purchases slumped.
However, other sources show that the momentary slump is unlikely to result in a long term drop in house purchases.
- Boris Johnson Unveils Shock Dividend Tax Increase – In a shocking revelation, Boris Johnson has revealed plans for a sharp increase in dividend tax in the contractor sector by 1.25%. This has come out of the blue and even caught experts off-guard as the increase had only been expected to affect NICs. Boris remained unyielding as he insisted that all three HMRC payments can expect a new, UK-wide ‘Health and Social Care Levy,’ resulting in higher tax bills for both umbrella and PSC contractors. This effectively means that owners and contractors of companies will have to contribute to the Care Levy regardless of whether they choose to take dividends or a salary.
- Buy to Let Market Rising – Should You Invest? – A new report by Shawbrook Bank has reported that as rents increase across the country and mortgage rates fall, Landlords are becoming more confident about expanding their portfolios. The report also found that investors are focussing on properties with gardens and more living space in order to attract tenants. New research by Shawbrook Bank revealed that 34% of landlords are looking to expand their portfolios in the coming year, with 10% interested in diversifying by investing in a different area from that of their current properties. These plans may be fuelled by changes in tenant priorities since the onset of the pandemic.
That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected] – if not, see you next week.